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ARC Resources

DB:8RC
Snowflake Description

Fair value with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
8RC
DB
CA$1B
Market Cap
  1. Home
  2. DE
  3. Energy
Company description

ARC Resources Ltd., together with its subsidiaries, acquires, develops, and holds interest in petroleum and natural gas properties and assets in Canada. The last earnings update was 53 days ago. More info.


Add to Portfolio Compare Print
  • ARC Resources has significant price volatility in the past 3 months.
8RC Share Price and Events
7 Day Returns
24%
DB:8RC
18.1%
DE Oil and Gas
7.3%
DE Market
1 Year Returns
-63.3%
DB:8RC
21.9%
DE Oil and Gas
-17.7%
DE Market
8RC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ARC Resources (8RC) 24% -40.6% -59.3% -63.3% -83.1% -86.5%
DE Oil and Gas 18.1% -15.9% -28.7% 21.9% -25.6% 137.4%
DE Market 7.3% -17.9% -25.8% -17.7% -25.6% -29%
1 Year Return vs Industry and Market
  • 8RC underperformed the Oil and Gas industry which returned 21.9% over the past year.
  • 8RC underperformed the Market in Germany which returned -17.7% over the past year.
Price Volatility
8RC
Industry
5yr Volatility vs Market

8RC Value

 Is ARC Resources undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of ARC Resources to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for ARC Resources.

DB:8RC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5.9%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:8RC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.81
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.808 (1 + (1- 26.5%) (69.33%))
1.147
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.15
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.147 * 5.44%)
5.85%

Discounted Cash Flow Calculation for DB:8RC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for ARC Resources is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:8RC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 5.85%)
2020 199.50 Analyst x8 188.47
2021 194.00 Analyst x5 173.15
2022 248.00 Analyst x1 209.11
2023 292.00 Analyst x1 232.59
2024 320.71 Est @ 9.83% 241.34
2025 342.41 Est @ 6.77% 243.43
2026 358.23 Est @ 4.62% 240.60
2027 369.39 Est @ 3.12% 234.38
2028 377.02 Est @ 2.06% 226.00
2029 382.03 Est @ 1.33% 216.34
Present value of next 10 years cash flows CA$2,205.00
DB:8RC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$382.03 × (1 + -0.39%) ÷ (5.85% – -0.39%)
CA$6,097.18
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$6,097.18 ÷ (1 + 5.85%)10
CA$3,452.81
DB:8RC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$2,205.00 + CA$3,452.81
CA$5,657.81
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$5,657.81 / 353.42
CA$16.01
DB:8RC Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:8RC represents 0.53623x of TSX:ARX
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.53623x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (CAD) x Listing Adjustment Factor
= CA$ 16.01 x 0.53623
€8.58
Value per share (EUR) From above. €8.58
Current discount Discount to share price of €2.22
= -1 x (€2.22 - €8.58) / €8.58
74.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price ARC Resources is available for.
Intrinsic value
>50%
Share price is €2.22 vs Future cash flow value of €8.58
Current Discount Checks
For ARC Resources to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • ARC Resources's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • ARC Resources's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for ARC Resources's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are ARC Resources's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:8RC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CAD CA$-0.08
TSX:ARX Share Price ** TSX (2020-03-30) in CAD CA$4.14
Europe Oil and Gas Industry PE Ratio Median Figure of 105 Publicly-Listed Oil and Gas Companies 5.67x
Germany Market PE Ratio Median Figure of 400 Publicly-Listed Companies 16.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of ARC Resources.

DB:8RC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:ARX Share Price ÷ EPS (both in CAD)

= 4.14 ÷ -0.08

-53.01x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ARC Resources is loss making, we can't compare its value to the Europe Oil and Gas industry average.
  • ARC Resources is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does ARC Resources's expected growth come at a high price?
Raw Data
DB:8RC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -53.01x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
-9.1%per year
Europe Oil and Gas Industry PEG Ratio Median Figure of 65 Publicly-Listed Oil and Gas Companies 0.17x
Germany Market PEG Ratio Median Figure of 254 Publicly-Listed Companies 1.2x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for ARC Resources, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on ARC Resources's assets?
Raw Data
DB:8RC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CAD CA$9.73
TSX:ARX Share Price * TSX (2020-03-30) in CAD CA$4.14
Germany Oil and Gas Industry PB Ratio Median Figure of 6 Publicly-Listed Oil and Gas Companies 0.94x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.43x
DB:8RC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:ARX Share Price ÷ Book Value per Share (both in CAD)

= 4.14 ÷ 9.73

0.43x

* Primary Listing of ARC Resources.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ARC Resources is good value based on assets compared to the DE Oil and Gas industry average.
X
Value checks
We assess ARC Resources's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. ARC Resources has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

8RC Future Performance

 How is ARC Resources expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-9.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ARC Resources expected to grow at an attractive rate?
  • Unable to compare ARC Resources's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare ARC Resources's earnings growth to the Germany market average as it is expected to be loss making during the next 1-3 years.
  • ARC Resources's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:8RC Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:8RC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts -9.1%
DB:8RC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts -0.1%
Europe Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 13%
Europe Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 2.1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.3%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:8RC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:8RC Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 1,219 624 -36 4
2020-12-31 1,099 614 -77 4
2020-03-30
DB:8RC Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-12-31 1,222 639 -28
2019-09-30 1,215 697 142
2019-06-30 1,332 777 245
2019-03-31 1,384 792 104
2018-12-31 1,396 863 214
2018-09-30 1,412 834 128
2018-06-30 1,288 752 131
2018-03-31 1,242 681 301
2017-12-31 1,209 673 389
2017-09-30 1,186 636 482
2017-06-30 1,156 647 462
2017-03-31 1,072 670 280

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • ARC Resources is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • ARC Resources's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:8RC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from ARC Resources Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:8RC Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.17 0.87 -0.40 6.00
2020-12-31 0.00 0.95 -0.34 7.00
2020-03-30
DB:8RC Past Financials Data
Date (Data in CAD Millions) EPS *
2019-12-31 -0.08
2019-09-30 0.40
2019-06-30 0.69
2019-03-31 0.30
2018-12-31 0.60
2018-09-30 0.36
2018-06-30 0.37
2018-03-31 0.85
2017-12-31 1.10
2017-09-30 1.36
2017-06-30 1.31
2017-03-31 0.79

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if ARC Resources will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.
X
Future performance checks
We assess ARC Resources's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
ARC Resources has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

8RC Past Performance

  How has ARC Resources performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare ARC Resources's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • ARC Resources does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare ARC Resources's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare ARC Resources's 1-year growth to the Europe Oil and Gas industry average as it is not currently profitable.
Earnings and Revenue History
ARC Resources's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ARC Resources Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:8RC Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 1,222.30 -27.60 84.20
2019-09-30 1,214.50 142.30 67.30
2019-06-30 1,332.20 244.60 79.30
2019-03-31 1,384.10 104.30 87.40
2018-12-31 1,395.90 213.80 85.20
2018-09-30 1,411.90 128.00 87.60
2018-06-30 1,287.90 131.40 76.60
2018-03-31 1,241.50 301.30 79.40
2017-12-31 1,208.50 388.90 70.20
2017-09-30 1,185.70 482.00 67.90
2017-06-30 1,156.10 461.80 73.40
2017-03-31 1,071.60 279.70 79.40
2016-12-31 974.50 201.30 99.30
2016-09-30 933.00 -20.70 98.10
2016-06-30 944.20 -284.00 94.40
2016-03-31 1,027.10 -276.90 89.70
2015-12-31 1,090.40 -342.70 68.60
2015-09-30 1,218.20 -174.00 80.60
2015-06-30 1,424.60 151.30 79.30
2015-03-31 1,614.50 349.70 75.10
2014-12-31 1,809.70 380.80 84.30
2014-09-30 1,783.80 280.70 83.90
2014-06-30 1,685.10 277.30 86.10
2014-03-31 1,542.30 223.20 89.40
2013-12-31 1,401.20 240.70 98.40
2013-09-30 1,360.80 311.60 99.20
2013-06-30 1,288.90 200.40 104.60
2013-03-31 1,215.10 145.20 104.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if ARC Resources has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • ARC Resources used its assets less efficiently than the Europe Oil and Gas industry average last year based on Return on Assets.
  • It is difficult to establish if ARC Resources improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess ARC Resources's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
ARC Resources has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

8RC Health

 How is ARC Resources's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up ARC Resources's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • ARC Resources's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • ARC Resources's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of ARC Resources's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from ARC Resources Company Filings, last reported 2 months ago.

DB:8RC Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 3,439.90 877.60 8.50
2019-09-30 3,502.10 842.80 6.40
2019-06-30 3,611.20 812.30 50.70
2019-03-31 3,568.80 877.60 147.90
2018-12-31 3,675.80 909.20 259.60
2018-09-30 3,568.00 863.30 251.10
2018-06-30 3,574.00 892.90 168.10
2018-03-31 3,671.90 925.00 257.90
2017-12-31 3,668.90 911.30 220.20
2017-09-30 3,646.80 922.40 333.20
2017-06-30 3,650.00 971.40 507.60
2017-03-31 3,577.90 1,005.00 642.00
2016-12-31 3,484.80 1,026.00 672.20
2016-09-30 3,346.10 1,015.50 48.50
2016-06-30 3,344.10 1,007.50 62.20
2016-03-31 3,427.60 1,034.40 168.60
2015-12-31 3,388.50 1,114.30 170.50
2015-09-30 3,494.10 1,092.50 208.70
2015-06-30 3,780.30 1,020.60 226.10
2015-03-31 3,884.60 1,065.90 194.60
2014-12-31 3,551.80 1,074.80 10.70
2014-09-30 3,492.00 988.30 5.60
2014-06-30 3,457.60 903.70 11.10
2014-03-31 3,368.80 989.00 13.80
2013-12-31 3,396.10 901.30 3.60
2013-09-30 3,442.60 780.70 9.30
2013-06-30 3,415.50 796.60 12.90
2013-03-31 3,382.80 802.40 88.90
  • ARC Resources's level of debt (25.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (30.2% vs 25.5% today).
  • Debt is well covered by operating cash flow (72.8%, greater than 20% of total debt).
  • Unable to confirm if the interest payments on ARC Resources's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess ARC Resources's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ARC Resources has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

8RC Dividends

 What is ARC Resources's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.8%
Current annual income from ARC Resources dividends. Estimated to be 10.28% next year.
If you bought €2,000 of ARC Resources shares you are expected to receive €116 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • ARC Resources's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.7%).
  • ARC Resources's dividend is above the markets top 25% of dividend payers in Germany (4.97%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:8RC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
Europe Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 68 Stocks 9.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 323 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 1%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:8RC Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.38 10.00
2020-12-31 0.46 12.00
2020-03-30
DB:8RC Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2020-03-13 0.240 7.252
2020-02-18 0.600 11.291
2020-01-15 0.600 8.340
2019-12-16 0.600 7.530
2019-11-15 0.600 8.756
2019-10-15 0.600 10.115
2019-09-16 0.600 9.725
2019-08-15 0.600 9.957
2019-07-15 0.600 9.492
2019-04-15 0.600 8.059
2019-03-15 0.600 6.437
2019-02-15 0.600 6.129
2019-01-15 0.600 6.264
2018-12-18 0.600 7.046
2018-11-15 0.600 6.451
2018-10-15 0.600 4.988
2018-09-17 0.600 4.296
2018-08-15 0.600 4.310
2018-05-02 0.600 4.318
2018-02-08 0.600 4.454
2017-11-10 0.600 4.126
2017-08-03 0.600 3.638
2017-05-03 0.600 3.470
2017-04-17 0.600 3.323
2017-03-16 0.600 3.173
2017-02-16 0.600 3.017
2017-01-16 0.600 2.908
2016-12-16 0.600 2.657
2016-11-16 0.600 2.540
2016-07-28 0.600 2.606
2016-04-28 0.600 2.782
2016-02-10 0.600 3.205
2015-11-04 1.200 6.999
2015-10-16 1.200 6.022
2015-07-16 1.200 6.352
2015-06-16 1.200 5.553
2015-05-19 1.200 5.338
2015-02-11 1.200 5.116
2014-11-05 1.200 4.840
2014-10-16 1.200 4.401
2014-09-16 1.200 4.174
2014-08-18 1.200 3.884
2014-07-16 1.200 3.963
2014-06-16 1.200 3.779
2014-05-16 1.200 3.744
2014-04-16 1.200 3.743
2014-03-17 1.200 3.916
2014-02-18 1.200 4.054
2014-01-16 1.200 4.158
2013-12-16 1.200 4.149
2013-11-19 1.200 4.167
2013-08-01 1.200 4.485
2013-05-01 1.200 4.383
2013-04-16 1.200 4.403
2013-03-15 1.200 4.469
2013-02-15 1.200 4.586
2012-11-07 1.200 4.997
2012-08-01 1.200 5.050
2012-05-02 1.200 5.633
2012-04-16 1.200 6.125
2012-03-15 1.200 5.418
2012-02-08 1.200 4.900
2012-01-16 1.200 5.027
2011-12-16 1.200 4.887
2011-11-16 1.200 4.778
2011-08-03 1.200 5.118
2011-05-17 1.200 4.775
2011-05-16 1.200 5.006
2011-04-15 1.200 4.849
2011-03-16 1.200 4.578
2011-02-10 1.200 4.525
2011-01-17 1.200 4.831
2010-12-14 1.200 4.810
2010-11-16 1.200 4.965
2010-10-15 1.200 5.422
2010-09-16 1.200 5.826
2010-08-16 1.200 6.076
2010-07-16 1.200 5.997
2010-06-16 1.200 5.899
2010-05-17 1.200 5.832
2010-03-16 1.200 5.626
2010-02-12 1.200 5.456
2010-01-15 1.200 5.819
2009-12-16 1.200 5.806
2009-11-16 1.200 5.981
2009-10-16 1.200 5.828
2009-09-16 1.200 6.040
2009-08-17 1.200 6.837
2009-07-16 1.200 6.865
2009-06-15 1.200 7.102
2009-05-15 1.200 6.819
2009-04-16 1.440 8.981

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of ARC Resources's earnings are paid to the shareholders as a dividend.
  • The company is paying a dividend however it is incurring a loss.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.7x coverage).
X
Income/ dividend checks
We assess ARC Resources's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can ARC Resources afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. ARC Resources has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

8RC Management

 What is the CEO of ARC Resources's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Terry Anderson
COMPENSATION CA$2,633,571
TENURE AS CEO 0 years
CEO Bio

Mr. Terry Michael Anderson, P. Eng., serves as Chief Executive Officer at ARC Resources Ltd. Since February 20, 2020 and served as Chief Operating Officer and Senior Vice President of ARC Resources Ltd. since December 13, 2013 until February 20, 2020. Mr. Anderson served as a Vice President of Operations of ARC Resources Ltd., a subsidiary of ARC Energy Trust since 2005. He served as Senior Vice President of Engineering & Land at ARC Resources Ltd.(ARC Energy Trust) since January 01, 2013 and served as its Senior Vice President of Engineering. He is responsible for all of ARC's operational activities. He served as Vice President of Engineering of ARC Energy Trust and served as its Vice president of Operations. Mr. Anderson served as Manager of Field Operations of ARC Resources. He has experience in drilling, completion, pipeline, facility and production operations. Prior to joining ARC in 2000, he worked at a major oil and gas company. He is a Member of the Association of Professional Engineers in Alberta, Saskatchewan and British Columbia. He has a B.Sc. degree in Petroleum Engineering from the University of Wyoming.

CEO Compensation
  • Terry's compensation has increased whilst company is loss making.
  • Terry's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the ARC Resources management team in years:

6
Average Tenure
56
Average Age
  • The average tenure for the ARC Resources management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Terry Anderson

TITLE
Chief Executive Officer
COMPENSATION
CA$3M

Myron Stadnyk

TITLE
President & Director
COMPENSATION
CA$5M
AGE
56
TENURE
11 yrs

Lara Conrad

TITLE
Vice President of Development & Planning
COMPENSATION
CA$1M
TENURE
6 yrs

Kris Bibby

TITLE
Senior VP & CFO
AGE
44

Armin Jahangiri

TITLE
Vice President of Operations

Ryan Berrett

TITLE
Vice President of Marketing
TENURE
3.2 yrs

Lisa Olsen

TITLE
Vice President of Human Resources
TENURE
4.2 yrs

Grant Zawalsky

TITLE
Corporate Secretary
AGE
59
TENURE
6.2 yrs
Board of Directors Tenure

Average tenure and age of the ARC Resources board of directors in years:

6.8
Average Tenure
65
Average Age
  • The tenure for the ARC Resources board of directors is about average.
Board of Directors

Hal Kvisle

TITLE
Independent Chairman of the Board
COMPENSATION
CA$415K
AGE
66
TENURE
4.2 yrs

Myron Stadnyk

TITLE
President & Director
COMPENSATION
CA$5M
AGE
56
TENURE
7.2 yrs

Herb Pinder

TITLE
Independent Director
COMPENSATION
CA$235K
AGE
72
TENURE
14.2 yrs

Kathleen O'Neill

TITLE
Independent Director
COMPENSATION
CA$245K
AGE
65
TENURE
10.8 yrs

Nancy Smith

TITLE
Independent Director
COMPENSATION
CA$234K
AGE
56
TENURE
4 yrs

David Collyer

TITLE
Independent Director
COMPENSATION
CA$230K
AGE
63
TENURE
3.3 yrs

John Dielwart

TITLE
Independent Director
COMPENSATION
CA$235K
AGE
66
TENURE
23.8 yrs

Fred Dyment

TITLE
Independent Director
COMPENSATION
CA$225K
AGE
70
TENURE
16.9 yrs

Bill Sembo

TITLE
Independent Director
COMPENSATION
CA$220K
AGE
65
TENURE
6.3 yrs

Farhad Ahrabi

TITLE
Independent Director
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • ARC Resources individual insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
27. Mar 20 Buy Larissa Conrad Individual 27. Mar 20 27. Mar 20 8,150 €2.51 €20,474
25. Mar 20 Sell John Dielwart Individual 24. Mar 20 24. Mar 20 -9,800 €1.95 €-19,146
25. Mar 20 Buy John Dielwart Individual 24. Mar 20 24. Mar 20 9,800 €1.96 €19,209
22. Mar 20 Sell Frederick Dyment Individual 20. Mar 20 20. Mar 20 -150,000 €2.19 €-327,255
17. Mar 20 Buy Terry Anderson Individual 17. Mar 20 17. Mar 20 50,000 €1.80 €89,795
05. Mar 20 Buy David Collyer Individual 03. Mar 20 03. Mar 20 10,000 €4.02 €40,247
31. Dec 19 Buy TSR Investments Company 27. Dec 19 27. Dec 19 134,200 €5.60 €750,873
18. Nov 19 Buy Kristen Bibby Individual 18. Nov 19 18. Nov 19 3,000 €4.34 €13,032
13. Nov 19 Buy Kristen Bibby Individual 12. Nov 19 12. Nov 19 3,000 €4.61 €13,841
25. Sep 19 Buy Kristen Bibby Individual 25. Sep 19 25. Sep 19 5,000 €4.46 €22,304
24. Sep 19 Buy Kristen Bibby Individual 23. Sep 19 24. Sep 19 10,000 €4.62 €45,991
18. Sep 19 Buy P. Van Dafoe Individual 16. Sep 19 16. Sep 19 78 €4.34 €339
06. Sep 19 Sell John Dielwart Individual 04. Sep 19 04. Sep 19 -40,000 €3.98 €-159,242
25. Aug 19 Buy Frederick Dyment Individual 23. Aug 19 23. Aug 19 20,000 €3.83 €76,475
16. Aug 19 Buy Christopher Baldwin Individual 16. Aug 19 16. Aug 19 11,000 €3.99 €43,934
16. Aug 19 Buy Myron Stadnyk Individual 16. Aug 19 16. Aug 19 2,500 €4.01 €10,019
15. Aug 19 Buy P. Van Dafoe Individual 15. Aug 19 15. Aug 19 6,000 €3.92 €23,519
14. Aug 19 Buy P. Van Dafoe Individual 14. Aug 19 14. Aug 19 10,000 €4.02 €40,174
02. Aug 19 Buy TSR Investments Company 02. Aug 19 02. Aug 19 9,800 €4.71 €46,159
17. Jun 19 Buy Lisa Olsen Individual 17. Jun 19 17. Jun 19 6,960 €4.43 €30,832
14. Jun 19 Buy Ryan Berrett Individual 14. Jun 19 14. Jun 19 5,000 €4.38 €21,904
14. Jun 19 Buy P. Van Dafoe Individual 14. Jun 19 14. Jun 19 10,000 €4.39 €43,941
13. Jun 19 Buy Kristen Bibby Individual 13. Jun 19 13. Jun 19 6,335 €4.52 €28,624
13. Jun 19 Buy Frederick Dyment Individual 12. Jun 19 12. Jun 19 20,000 €4.39 €87,801
03. Jun 19 Buy Frederick Dyment Individual 31. May 19 31. May 19 50,000 €4.85 €241,834
06. May 19 Buy Frederick Dyment Individual 06. May 19 06. May 19 10,000 €5.27 €52,720
03. May 19 Buy Lisa Olsen Individual 03. May 19 03. May 19 3,040 €5.39 €16,296
X
Management checks
We assess ARC Resources's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. ARC Resources has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

8RC News

Simply Wall St News

8RC Company Info

Description

ARC Resources Ltd., together with its subsidiaries, acquires, develops, and holds interest in petroleum and natural gas properties and assets in Canada. The company holds interests in the Montney properties located in northeast British Columbia and northern Alberta; and Cardium properties in the Pembina area of Alberta. As of December 31, 2019, it had proved plus probable reserves of 909.9 millions of barrels of oil equivalent. ARC Resources Ltd. was founded in 1996 and is headquartered in Calgary, Canada.

Details
Name: ARC Resources Ltd.
8RC
Exchange: DB
Founded: 1996
CA$853,854,358
353,421,000
Website: http://www.arcresources.com
Address: ARC Resources Ltd.
308 - 4th Avenue South West,
Suite 1200,
Calgary,
Alberta, T2P 0H7,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX ARX Common Shares The Toronto Stock Exchange CA CAD 11. Jul 1996
OTCPK AETU.F Common Shares Pink Sheets LLC US USD 11. Jul 1996
DB 8RC Common Shares Deutsche Boerse AG DE EUR 11. Jul 1996
Number of employees
Current staff
Staff numbers
438
ARC Resources employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/30 22:53
End of day share price update: 2020/03/30 00:00
Last estimates confirmation: 2020/03/30
Last earnings filing: 2020/02/06
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.